Question :
61) ________ the instantaneous purchase and sale of a currency : 1406233
61) ________ is the instantaneous purchase and sale of a currency in different markets for profit.
A) Currency hedging
B) Currency arbitrage
C) Currency speculation
D) Currency conversion
62) The profit-motivated purchase and sale of interest-paying securities denominated in different currencies is called ________.
A) currency conversion
B) currency hedging
C) interest arbitrage
D) interbank interest rates
63) The purchase or sale of a currency with the expectation that its value will change and generate a profit is called ________.
A) currency hedging
B) currency arbitrage
C) currency speculation
D) currency conversion
64) In a quoted exchange rate of $1.69/British pound, the British pound is called the ________.
A) base currency
B) counter currency
C) cross currency
D) quoted currency
65) An exchange rate of ¥117.87/$ indicates ________.
A) that 117.87 yen buys one dollar
B) that 117.87 dollars buys one yen
C) a direct quote on the dollar
D) an indirect quote on the yen
66) While designating an exchange rate, the numerator indicates the ________.
A) base currency
B) transaction currency
C) quoted currency
D) cross currency
67) While designating an exchange rate, the ________ is always the denominator.
A) counter currency
B) base currency
C) cross currency
D) quoted currency
68) The exchange rate between the euro (€) and the dollar is €0.8461/$. Which of the following is the correct direct quote on the dollar?
A) $2.20/€
B) $1.1819/€
C) $5.50/€
D) $0.8461/€
69) An exchange rate calculated using two other exchange rates is called a(n) ________.
A) interest arbitrage
B) forward contract
C) forward rate
D) cross rate
70) Which of the following is an exchange rate that requires delivery of the traded currency within two business days?
A) forward rate
B) spot rate
C) cross rate
D) prime rate
